EX-99.1 2 tm2513922d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

News Release 

 

Axcelis Announces Financial Results for First Quarter 2025

 

Q1 Highlights:

 

·Revenue of $192.6 million
·GAAP Gross Margin of 46.1%, and Non-GAAP Gross Margin of 46.4%
·GAAP Operating Margin of 15.1% and Non-GAAP Operating Margin of 18.3%
·GAAP Diluted earnings per share of $0.88, and Non-GAAP Diluted earnings per share of $1.04

 

BEVERLY, Mass.— May 6, 2025—Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the first quarter ended March 31, 2025.

 

President and CEO Russell Low commented, “We executed well in the first quarter, delivering strong profitability despite a moderation in customer investments and a more uncertain broader economic backdrop. Axcelis is well positioned to navigate a dynamic macroeconomic and global trade environment with an agile global manufacturing and supply chain footprint that we have optimized over the past few years. This provides a solid platform for us to meet our customers’ needs while continuing to invest in innovation to capture the long-term growth opportunities that lie ahead.”

 

Executive Vice President and Chief Financial Officer Jamie Coogan said, “We delivered strong margins and cash flow in the first quarter, reflecting solid execution and the resilience of our operating model. We exited the quarter with a robust cash position and no debt, and are repurchasing shares in an opportunistic but disciplined manner, while continuing to invest in our business.”

 

Results Summary

(In thousands, except per share amounts and percentages)

 

   Three months ended March 31, 
   2025   2024 
Revenue  $192,563   $252,372 
Gross margin   46.1%   46.0%
Operating margin   15.1%   22.4%
Net income  $28,579   $51,595 
Diluted earnings per share  $0.88   $1.57 
           
Non-GAAP Results          
Non-GAAP gross margin   46.4%   46.1%
Non-GAAP operating margin   18.3%   24.1%
Adjusted EBITDA  $39,520  $64,545
Non-GAAP net income  $33,784   $55,234 
Non-GAAP diluted earnings per share  $1.04   $1.68 

 

 

 

 

News Release 

 

Business Outlook

 

For the second quarter ending June 30, 2025, Axcelis expects revenues of approximately $185 million, GAAP earnings per diluted share of approximately $0.57, and non-GAAP earnings per share of approximately $0.73.

 

Please refer to Second Quarter Outlook under the “Notes on our Non-GAAP Financial Information” section of this document for detail relating to the computation of non-GAAP earnings per diluted share as well as the Safe Harbor Statement section of this document.

 

First Quarter 2025 Conference Call

 

The Company will host a call today to discuss the results at 8:30 a.m. ET. The call will be available via webcast that can be accessed through the Investors page of Axcelis' website at www.axcelis.com, or by registering as a participant here:

 

https://register-conf.media-server.com/register/BI454c6816ae884406ade486cc1372dc9f Webcast replays will be available for 30 days following the call.

 

Use of Non-GAAP Financial Results

 

This press release includes financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“Non-GAAP financial measures”). These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP income tax provision, Adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share, and reflect adjustments for the impact of share-based compensation expense and certain items related to restructuring and severance charges and any associated adjustments.

 

Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

 

For further information regarding these Non-GAAP financial measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our GAAP results and the “Notes on Our Non-GAAP Financial Information” at the end of this press release.

 

 

 

 

News Release 

 

Safe Harbor Statement

 

This press release contains, and the conference call will contain, forward-looking statements under the Private Securities Litigation Reform Act safe harbor provisions. These statements, which include our expectations for spending in our industry and guidance for future financial performance, are based on management’s current expectations and should be viewed with caution. They are subject to various risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are outside the control of the Company, including that customer decisions to place orders or our product shipments may not occur when we expect, that orders may not be converted to revenue in any particular quarter, or at all, whether demand will continue for the semiconductor equipment we produce or, if not, whether we can successfully meet changing market requirements, and whether we will be able to maintain continuity of business relationships with and purchases by major customers. Increased competitive pressure on sales and pricing, increases in material and other production costs that cannot be recouped in product pricing and instability caused by changing global economic, political or financial conditions, including with respect to the imposition of tariffs on our products or components of our products, could also cause actual results to differ materially from those in our forward-looking statements. These risks and other risk factors relating to Axcelis are described more fully in the most recent Form 10-K filed by Axcelis and in other documents filed from time to time with the Securities and Exchange Commission.

 

About Axcelis:

 

Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

 

CONTACTS:

 

Investor Relations Contact:

David Ryzhik

Senior Vice President, Investor Relations and Corporate Strategy

Telephone: (978) 787-2352

Email: [email protected]

 

Press/Media Relations Contact: 

Maureen Hart

Senior Director, Corporate & Marketing Communications

Telephone: (978) 787-4266

Email: [email protected]

 

 

 

 

News Release 

 

Axcelis Technologies, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

   Three months ended March 31, 
   2025   2024 
Revenue:          
Product  $182,824   $243,418 
Services   9,739    8,954 
Total revenue   192,563    252,372 
Cost of revenue:          
Product   94,500    127,912 
Services   9,295    8,409 
Total cost of revenue   103,795    136,321 
Gross profit   88,768    116,051 
Operating expenses:          
Research and development   27,128    25,662 
Sales and marketing   15,124    17,445 
General and administrative   17,357    16,405 
Total operating expenses   59,609    59,512 
Income from operations   29,159    56,539 
Other income (expense):          
Interest income   5,601    5,516 
Interest expense   (1,367)   (1,346)
Other, net   (309)   (1,710)
Total other income   3,925    2,460 
Income before income taxes   33,084    58,999 
Income tax provision   4,505    7,404 
Net income  $28,579   $51,595 
Net income per share:          
Basic  $0.89   $1.58 
Diluted  $0.88   $1.57 
Shares used in computing net income per share:          
Basic weighted average shares of common stock   32,258    32,638 
Diluted weighted average shares of common stock   32,335    32,926 

 

 

 

 

News Release 

 

Axcelis Technologies, Inc.

Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

 

   March 31,   December 31, 
   2025   2024 
ASSETS          
Current assets:          
Cash and cash equivalents  $183,957   $123,512 
Short-term investments   403,102    447,831 
Accounts receivable, net   164,949    203,149 
Inventories, net   295,850    282,225 
Prepaid income taxes   6,615    6,420 
Prepaid expenses and other current assets   59,463    60,471 
Total current assets   1,113,936    1,123,608 
Property, plant and equipment, net   57,034    53,784 
Operating lease assets   28,767    29,621 
Finance lease assets, net   15,025    15,346 
Long-term restricted cash   7,553    7,552 
Deferred income taxes   69,334    68,277 
Other assets   48,969    50,593 
Total assets  $1,340,618   $1,348,781 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $38,985   $46,928 
Accrued compensation   14,796    25,536 
Warranty   11,882    13,022 
Deferred revenue   110,456    94,673 
Current portion of finance lease obligation   1,370    1,345 
Other current liabilities   22,881    26,018 
Total current liabilities   200,370    207,522 
Long-term finance lease obligation   41,958    42,329 
Long-term deferred revenue   28,868    43,501 
Other long-term liabilities   42,184    42,639 
Total liabilities   313,380    335,991 
           
Stockholders’ equity:          
Common stock, $0.001 par value, 75,000 shares authorized; 32,129 shares issued and outstanding at March 31, 2025; 32,365 shares issued and outstanding at December 31, 2024   32    32 
Additional paid-in capital   547,020    548,654 
Retained earnings   485,673    470,318 
Accumulated other comprehensive loss   (5,487)   (6,214)
Total stockholders’ equity   1,027,238    1,012,790 
Total liabilities and stockholders’ equity  $1,340,618   $1,348,781 

 

 

 

 

News Release 

 

Axcelis Technologies, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

    Three months ended March 31,  
    2025     2024  
Cash flows from operating activities                
Net income   $ 28,579     $ 51,595  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     4,309       3,775  
Stock-based compensation expense     4,903       4,690  
Other     (1,682 )     3,143  
Change in operating assets and liabilities, net     3,686       (20,980 )
Net cash provided by operating activities     39,795       42,223  
                 
Cash flows from investing activities                
Expenditures for property, plant and equipment and capitalized software     (4,960 )     (1,620 )
Other changes in investing activities, net     45,429       (54,071 )
Net cash provided by (used in) investing activities     40,469       (55,691 )
                 
Cash flows from financing activities                
Repurchase of common stock     (18,178 )     (14,999 )
Other changes from financing activities, net     (1,932 )     (3,056 )
Net cash used in financing activities     (20,110 )     (18,055 )
                 
Effect of exchange rate changes on cash and cash equivalents     292       (1,813 )
Net increase (decrease) in cash, cash equivalents and restricted cash     60,446       (33,336 )
                 
Cash, cash equivalents and restricted cash at beginning of period     131,064       173,951  
Cash, cash equivalents and restricted cash at end of period   $ 191,510     $ 140,615  

 

 

 

 

News Release 

 

Notes on Our Non-GAAP Financial Information

 

Management uses non-GAAP gross profit, gross margin, operating income, operating margin, income tax provision, net income, diluted earnings per share, and Adjusted EBITDA to evaluate the Company’s operating and financial performance and for planning purposes. Axcelis believes these measures enhance an overall understanding of its performance and investors’ ability to review the Company’s business from the same perspective as the Company’s management.

 

There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

 

Totals presented may not sum and percentages may not recalculate using figures presented due to rounding.

 

 

 

 

News Release 

 

Axcelis Technologies, Inc.

Schedule Reconciling Selected Non-GAAP Financial Measures

(In thousands, except per share amounts and percentages)

 

   Three months ended March 31, 
   2025   2024 
GAAP gross profit  $88,768   $116,051 
Restructuring1   226    — 
Stock-based compensation   353    290 
Non-GAAP gross profit  $89,347   $116,341 
Non-GAAP gross margin   46.4%   46.1%
           
Operating expenses  $59,609   $59,512 
Bad debt expense   —    459 
Restructuring   (923)   — 
Stock-based compensation   (4,550)   (4,400)
Non-GAAP operating expenses  $54,136   $55,571 
           
GAAP operating income  $29,159   $56,539 
Bad debt expense   —    (459)
Restructuring1   1,149    — 
Stock-based compensation   4,903    4,690 
Non-GAAP operating income  $35,211   $60,770 
Non-GAAP operating margin   18.3%   24.1%
           
GAAP income tax provision  $4,505   $7,404 
Income tax effect of Non-GAAP adjustments2   847    592 
Non-GAAP income tax provision  $5,352   $7,996 
           
GAAP net income  $28,579   $51,595 
Bad debt expense   —    (459)
Restructuring1   1,149    — 
Stock-based compensation   4,903    4,690 
Income tax effect of Non-GAAP adjustments2   (847)   (592)
Non-GAAP net income  $33,784   $55,234 
           
GAAP diluted EPS  $0.88   $1.57 
Bad debt expense   —    (0.01)
Restructuring1   0.04    — 
Stock-based compensation   0.15    0.14 
Income tax effect of Non-GAAP adjustments2   (0.03)   (0.02)
Non-GAAP diluted EPS  $1.04   $1.68 

 

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

Note 2: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

 

 

 

 

News Release 

 

Axcelis Technologies, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(In thousands, except percentages)

 

   Three months ended March 31, 
   2025   2024 
Net income  $28,579   $51,595 
Other (income)/expense   (3,925)   (2,460)
Income tax provision   4,505    7,404 
Depreciation & amortization   4,309    3,775 
Subtotal   33,468    60,314 
Bad debt expense   —    (459)
Restructuring1   1,149    — 
Stock-based compensation   4,903    4,690 
Adjusted EBITDA  $39,520   $64,545 
Adjusted EBITDA margin   20.5%   25.6%

 

Note 1: Restructuring and other costs primarily related to early retirement programs and severance costs, due to global cost-saving initiatives.

 

Axcelis Technologies, Inc.

Second Quarter Outlook

GAAP to Non-GAAP Diluted Earnings Per Share

 

   Three months ended
June 30, 2025		 
GAAP diluted EPS  $0.57 
Stock-based compensation   0.18 
Income tax effect of non-GAAP adjustments1   (0.03)
Non-GAAP diluted EPS  $0.73 

 

Note 1: Impact of taxes from non-GAAP adjustments, uses adjusted tax rate of 14%.

Figures may not sum due to rounding.